Before jumping into cryptocurrency, you need to choose an exchange that fits your needs. Both Coinbase and Crypto.com are great options, but their fee structures, trading capabilities and user interfaces greatly differ. Depending on your goals as an investor, one of these platforms may be superior to the other.
What is a Cryptocurrency Exchange?
Cryptocurrency exchanges work in a similar way to stock exchanges, utilizing order books with buy and sell orders. Investors can set a price they wish to buy or sell a digital asset at, and these bids are organized into an order book. The market price of an asset is determined by the lowest sell order in the order book. Once someone buys a cryptocurrency at this price, the next lowest sell order is the new market price.
One key difference between stock exchanges and cryptocurrency exchanges is that crypto exchanges don’t close. While the stock market is only open from 9 AM to 4 PM on weekdays, crypto markets are open 24 hours a day, 7 days a week.
Important Cryptocurrency Exchange Features
As a cryptocurrency investor, there should be a few features at the top of your list when considering which cryptocurrency exchange to use. Security, variety of digital assets, trading capabilities and fees should be some of the key features you consider when choosing a cryptocurrency exchange.
If you’re focused on high frequency trading, then trading fees should be a top concern. However, since trading requires you to store your crypto on an exchange, the security features on the exchange should also be top priority.
In terms of security, 2-factor authentication is a must. This security feature has you confirm your sign in from another account, typically your email or Google Authenticator account. This way, if a hacker is able to access your password, they’d still need access to your secondary account to steal your crypto funds.
As a cryptocurrency investor, there’s nothing more frustrating than not being able to invest in a cryptocurrency because it’s not supported by the exchange you use. Make sure that the assets you seek to invest in are supported by the trading platform you choose, so you won’t need gto make another exchange account in the future.
Features on Coinbase
Coinbase has a few trading features that are unique to its platform, which may be of use to you. One of the most popular features on Coinbase is Coinbase Earn. Coinbase Earn is a program that teaches you about different cryptocurrencies. After watching a short video and answering a couple questions, Coinbase will credit your account with the crypto you just learned about for free.
Another useful feature on Coinbase is its conversion feature. This trading feature allows you to convert any cryptocurrency into another supported asset on the exchange. This way, you won’t need to sell your crypto and then buy another cryptocurrency with the proceeds. Plus, this conversion feature is completely free to use.
Features on Crypto.com
Crypto.com has a very developed ecosystem that lets you do more with your cryptocurrency than a typical trading platform. One feature that Crypto.com is extremely popular for is their crypto-back debit card, allowing users to spend their cryptocurrency via debit card and earn cryptocurrency rewards for doing so.
The exchange also allows you to earn interest on your cryptocurrency and stablecoins. Stablecoins currently return about 12% per annum in interest, while cryptocurrencies range up to 6.5% annually. If you’re investing in cryptocurrency for the long-term, then earning interest is a great way to increase your investment positions.
Coinbase Fees vs. Crypto.com Fees
In general, Crypto.com has lower fees than Coinbase. Crypto.com charges up to 0.4% per trade, and this amount is less if you’re a crypto.com card holder. The platform charges more for credit card purchases, coming in at 2.99% per credit card purchase.
On the other hand, Coinbase charges 1.49% per trade. There’s also a maximum spread of 0.5%, meaning you may be paying more than market price for the cryptocurrency you invest in. If you choose to use a credit card to purchase crypto, Coinbase will charge you 3.99%.
If you’re looking to use Coinbase but don’t want to pay high fees, consider using Coinbase Pro. Coinbase Pro has a more involved user interface, but the platform’s fees are significantly lower than the normal Coinbase app.
Security Features on Coinbase vs. Crypto.com
Both Coinbase and Crypto.com are regarded as secure exchanges to trade cryptocurrency on, and they secure their platforms in similar ways. Both platforms insure USD deposits up to $250,000. Plus, both exchanges use cold storage to secure crypto assets.
Cold storage stores cryptocurrency offline, so even if there’s a security breach on the platform, the hacker won’t be able to access this cold storage. Even if someone finds a way to breach Coinbase or Crypto.com, only a small fraction of cryptocurrency on the platform could be stolen.
Altcoins Supported on Coinbase vs. Crypto.com
Coinbase and Crypto.com are some of the leading cryptocurrency exchanges in the United States. Both websites offer support for Bitcoin, Ethereum and several altcoins. However, certain exchanges don’t support specific altcoins, so be sure to check which cryptocurrencies are available on the trading platform before opening a crypto exchange account.
Top Altcoins on Coinbase But Not Crypto.com
Top Altcoins on Crypto.com But Not Coinbase
- Shiba Inu
- The Sandbox
- Axie Infinity
So, Coinbase or Crypto.com?
While Crypto.com supports more assets than Coinbase, both platforms have a good variety of cryptocurrencies to choose from. If you like simplicity, then Coinbase may be better for you. That being said, Crypto.com has a great program to earn cryptocurrency through debit card spending, which is unique to its platform. At the end of the day, the better cryptocurrency exchange comes down to personal preference.
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